Exploring Vistra Corp's dividend performance and sustainability
Vistra Corp (VST, Financial) recently announced a dividend of $0.21 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-19. As investors eagerly anticipate this upcoming payment, it's crucial to cast a light on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, we will delve into Vistra Corp's dividend performance and evaluate its sustainability.
Understanding Vistra Corp's Business Model
Vistra Energy, one of the largest power producers and retail energy providers in the U.S., owns and operates 38 gigawatts of nuclear, coal, natural gas, and solar power generation. Its retail electricity segment serves 4.3 million customers across 20 states, with almost one-third of all Texas electricity consumers under its umbrella. Vistra emerged from the Energy Future Holdings bankruptcy as a standalone entity in 2016, acquired Dynegy in 2018, and plans to close the Energy Harbor acquisition in 2023.
Vistra Corp's Dividend History: A Snapshot
Vistra Corp has upheld a consistent dividend payment record since 2019, with dividends currently distributed on a quarterly basis. The chart below illustrates the annual Dividends Per Share for a historical trend perspective.
Dissecting Vistra Corp's Dividend Yield and Growth
As of today, Vistra Corp boasts a 12-month trailing dividend yield of 2.33% and a 12-month forward dividend yield of 2.48%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, Vistra Corp's annual dividend growth rate stood at 13.10%. Based on these figures, the 5-year yield on cost of Vistra Corp stock as of today is approximately 2.33%.
Is Vistra Corp's Dividend Sustainable? Analyzing Payout Ratio and Profitability
The sustainability of a dividend hinges on the company's payout ratio. The dividend payout ratio offers an insight into the percentage of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, Vistra Corp's dividend payout ratio stood at 0.22.
Vistra Corp's profitability rank provides a gauge of the company's earnings prowess relative to its peers. As of 2023-06-30, Vistra Corp's profitability rank was 5 out of 10, indicating fair profitability. The company has reported net profit in 2 years out of the past 10 years.
Peering into the Future: Vistra Corp's Growth Metrics
A company must demonstrate robust growth metrics to ensure the sustainability of dividends. Vistra Corp's growth rank of 5 out of 10 suggests a fair growth outlook. Revenue, being the lifeblood of any company, coupled with Vistra Corp's revenue per share and 3-year revenue growth rate, indicates a strong revenue model. Vistra Corp's revenue has increased by approximately 11.20% per year on average, outperforming approximately 50.28% of global competitors.
Concluding Remarks
With a consistent dividend payment record, promising yield, and fair profitability and growth metrics, Vistra Corp presents a compelling case for dividend-focused investors. However, as with any investment, it's crucial to consider all factors and perform due diligence. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
